Bond markets entering period of range trading

Newton believes the global bond market is set for a period of range trading and, at worst, a rising ...

Newton believes the global bond market is set for a period of range trading and, at worst, a rising yields. While there remains optimism towards the high-yield end of the bond market and emerging market debt, many groups are becoming concerned about the short-term outlook for sovereign paper in light of rising global interest rates. According to Newton, money markets are pricing in further interest rate rises for the next nine months, in contrast to what many commentators expect, primarily that rates will stay low into 2004. Richard Urwin, head of strategic research at Gartmore, expects f...